The main unions in the automotive sector have called on Stellantis employees in Italy to observe a strike this Friday, October 18, to protest against the fall in production and the disengagement of the car manufacturer in this country. We’ll explain it to you.
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In Franche-Comté, the Stellantis sites will operate normally. Not even a single debauched hour at the historic Sochaux factory in Doubs. No, nothing. On the other hand, in Italy, Friday October 18, it will be dead sites. In the factories of Stellantis, the former national flagship Fiat which merged in 2021 with Peugeot-Citroën, employees are in fact called for a massive strike.
It will be a historic strike, the likes of which have not been seen in over forty years.
Rocco Palombella, general secretary of the Uilm union, Italian union
The reason for this movement: Production targets seen as lowered by Stellantis management, sometimes with job cuts as a result.
In 2023, Stellantis increased its production in Italy by 9.6%, to nearly 752,000 vehicles. Pressured by the nationalist government of Giorgia Meloni, the manufacturer even committed to increasing it to one million units in 2030.
Unfortunately, after three years of growth, production in Italy fell again in the first half, falling by 25.2% to 303,510 vehicles. The group led by Carlos Tavares is now targeting an operating margin for the year 2024 of between 5.5% and 7% compared to “double figures” previously.
The reasons for this drop in production are multiple. There was the covid epidemic and more recently, the shortage of electronic components. Added to this is slower-than-expected growth in electric car sales which began fine 2023 en Europe. Buyers are cautious due to their high cost and their autonomy considered limited.
The suspension of the project to build a mega-factory of batteries for electric cars in Termoli, in the south of Italy, does not reassure them either and in the Mirafiori factory, in Turin, the production of iconic Fiat 500 in electric version had to be suspended in mid-September for a month, due to low demand.
In Italy, factories are completely shut down for weeks, with record technical unemployment. We must reindustrialize in Europe
Jean-Paul Guy, CFTC delegate of Stellantis in Vesoul
Before Stellantis, the manufacturers Volkswagen, BMW, Mercedes, Volvo and Aston Martin also revised their objectives downwards, sometimes with job cuts as a result.
Faced with the dramatic situation experienced by Italian workers at Stellantis and the entire automotive sector, the unions could not “silently witness industrial desertification”commented Rocco Palombella, general secretary of the Uilm union, in a press release, hence the decision for an unprecedented strike in Italy, Friday October 18, 2024
Apart from the sluggish auto market, another reason is undermining Stellantis’ productivity. To restore its sales in North America, the group, led by Carlos Tavares, launched several costly operations. So, to sell overpriced vehicles, American dealers are increasing promotions on vehicles and trying to produce less, and for less money.
“Approximately two-thirds of the reduction in current operating margin is attributable to corrective actions in North America,” specifies Stellantis in a press release.
In Europe, Stellantis sites face another major problem. China. From the end of October, Chinese vehicles sold in Europe will be subject to import taxes of around 45%. In order to avoid paying this incredible tax, Chinese manufacturers are increasing their announcements of opening production sites in Europe. To counter this competition, Carlos Tavares (who will retire in 2026), does not rule out factory closures within his group.
It’s a very difficult context, Stellantis is relocating to low-cost countries. European politicians should take emergency measures to protect jobs in France and Italy
Jean-Paul Guy, CFTC delegate of Stellantis in Vesoul
Thus, in a long interview given to the newspaper Les Echos on October 13, the boss of Stellantis declared “If the Chinese take 10% market share in Europe at the end of their offensive, that means they will produce 1.5 million cars. That’s seven assembly plants. European manufacturers will then have to either close or transfer them to Chinese groups.” In Europe, there are 18 assembly sites, five of which are in France and only one in Franche-Comté, Sochaux.
